Euro zone finance ministers agree on debit crises taking hype in Europe

Euro zone finance ministers agree on debit crises taking hype in Europe

Finance ministers of euro zone are agreed to the pressure imposed by United States to quickly resolve the crises.

U.S. President Barack Obama has asked the European Union officials to take a strong and proper decision to solve the lagging issue that has affected several European countries in the zone. He added that the crises had started to show its affect on the U.S.
economy.

Underlining the threat to tottering European economies, ratings agency Moody’s warned on Tuesday it could downgrade the subordinated debt of 87 banks across 15 countries on concerns that governments would be too cash-strapped to bail them out.

Rival Standard & Poor’s could downgrade the outlook on France’s top-level triple-A credit status within the next 10 days, signalling a possible ratings cut, a newspaper reported. The news briefly hit the euro.

White House spokesman Jay Carney said Obama’s message, delivered to top EU officials behind closed doors in Washington, was that: "Europe needs to take decisive action, conclusive action to handle this problem, and that it has the capacity to do so.

Poland’s Foreign Minister Radoslaw Sikorski made a dramatic appeal in Berlin on Monday for Germany to show more leadership in the euro zone crisis.

"You know full well that nobody else can do it," he said in a speech in the German capital, referring to efforts to save Europe’s monetary union.

"I will probably be the first Polish foreign minister in history to say so, but here it is: I fear German power less than I am beginning to fear German inactivity. You have become Europe’s indispensable nation."

Tuesday’s meeting of the Eurogroup, which brings together finance ministers from the 17 euro-zone members, was set to fix details of leveraging the European Financial Stability Fund (EFSF) so it can help Italy or Spain should they need aid.

They are also likely to approve the next tranche of emergency loans for Greece and Ireland.

Hopes that signs of concrete action could ease strains on the euro zone boosted markets with Asian equities and the euro rising for a second day on Tuesday.

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Posted by Samer Ahmed on Nov 29 2011. Filed under World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry